Public Markets 3 Hours

Last updated: May 12, 2026, 5:30 AM ET

Geopolitics & Energy Markets Grip Trading

Global markets remain tense as persistent Middle East uncertainty drove oil higher even as U.S. indexes hit fresh highs supported by AI-related enthusiasm. The diplomatic stalemate between the U.S. and Iran kept crude prices elevated , bolstering demand for the dollar as a safe haven. Adding to energy supply concerns, damage to the UAE’s Habshan gas plant from Iranian attacks will not be fully repaired until 2027, signaling lasting disruptions to Gulf energy exports. In a related security measure, Qatar is instructing vessels at its primary LNG export terminal to deactivate their transponders, according to sources familiar with the matter.

Central Bank Policy & European Credit Scrutiny

European Central Bank policymakers are monitoring the escalating geopolitical risks, with ECB Governing Council member Nagel stating the bank must act if the Iran war jeopardizes price stability, although a decision on rates is still expected next month. Meanwhile, German financial regulators are increasing pressure on domestic insurers regarding shortcomings in their private credit holdings, an asset class increasingly marketed toward retail investors. This scrutiny follows disclosures like Munich Re’s reportdisclosures like that it holds as much as €2.5 billion ($2.9 in private credit, an area facing redemption issues and underwriting questions.

M&A Bidding Wars & Corporate Strategy

The takeover battle for UK testing firm Intertek intensified as EQT AB submittedintensified as its fourth and final bid, sweetening the offer to approximately £10.6bn or $12.79 billion, stating it was its final proposal to overcome repeated rejections. Elsewhere in corporate finance, Bristol-Myers Squibb inkedin corporate finance a collaboration deal with Hengrui that could be worth up to $15.2 billion, leveraging its position in the Chinese market. On the investment front, Prosus plans to accelerateinvestment front investments into iFood after achieving its fiscal 2026 targets, while President Macron announced €23 billion in dealsPresident Macron announced mobilized at the France-Africa summit.

Sectoral Shifts and Supply Chain Ripples

Despite broader market jitters, Mitsubishi Heavy Industries expectsbroader market jitters global demand for gas turbines to remain healthy, seeing only a slight decline this year from 2025 levels, largely sustained by ongoing data center build-outs. However, supply chain pressures stemming from the Middle East conflict are manifesting in unexpected ways; Japan’s largest potato chip maker, Calbee, is temporarily draining color from its packaging, using only black and white bags due to rising petroleum-based ink costs. In the UK, Labour leader Keir Starmer faces calls to step down following weak election results, contributing to a slump in UK Gilts that pushed long-term yields to nearly three-decade highs.